Confirmation of Statutory Increases for 2023!

Every April there are statutory increases that could affect your business. Here are some of the key ones you will need to be aware of this April. Effective from 1 April 2023 UK National Living Wage age 23 and over For workers aged 23 and over the hourly rate of pay will be £10.42. An increase of 92 pence per hour, (9.7%) from £9.50. This is the largest ever increase to the NLW and ensures that the NLW continues to track to reach the Governments target of two thirds of median earnings by 2024. Minimum Wage for 21 to 22-year-olds Employees and workers aged 21 to 22 inclusive will see an increase to £10.18, £1 per hour more than the current rate of £9.18 (10.9%) Minimum Wage for 18 to 20-year-olds Employees and workers aged 18 to 20 inclusive will see an increase to £7.49, 66 pence per hour more that the current rate of £6.83 (9.6%) Minimum Wage for 16 to 17-year-olds Employees and workers under 18 years of age but above the compulsory school leaving age will increase to £5.28, 47 pence per hour more than the current rate of £4.81 (9.7%) Minimum Wage for Apprentices Apprentices under 19, or over 19 and in the first year of an apprenticeship will have an increase in pay to £5.28, 47 pence per hour more than the current rate of £4.81 (9.7%) Family Friendly Increases from 2 April 2023 Statutory Parental Bereavement Pay (SPBP) In the tragic even that an employee loses their child, subject to meeting the eligibility criteria, they will be entitled to take statutory time off. This will increase to £172.48 per week or 90% of the employees weekly earnings if this is lower. In order to qualify for the following Statutory leave, employees must have been continuously employed for 26 weeks or more by the end of the 15^th week before a baby is due. This is known as the qualifying week. You must also earn over the lower earnings limit, currently £123 per week. Statutory Maternity Pay (SMP) Statutory maternity leave lasts for up to 52 weeks. The first six weeks of maternity leave will beat 90% of the employees average weekly earnings. The following 33 weeks at the statutory rate of £172.48 or 90% of employees weekly earnings if this is lower, with the final 13 weeks at nil pay. Statutory Shared Parental Pay (ShPP) The statutory rate for this will increase to £172.48 per week or 90% of the employees weekly earnings if this is lower. Statutory Paternity Pay (SPP) The statutory rate for this will increase to £172.48 per week or 90% if the employees weekly earnings if this is lower. Statutory Adoption Pay (SAP) Statutory adoption leave lasts for up to 52 weeks. The first six weeks will be paid at 90% of the employees average weekly earnings. The following weeks will be paid at the statutory rate of £172.48 or 90% of the employees weekly earnings is this is lower with the final 13 weeks at nil pay. Increases from 6 April 2023 Statutory Sick Pay (SSP) SSP can be paid to employees for up to 28 weeks subject to meeting the eligibility criteria. Employers have a duty to pay the statutory minimum for this period of time. Employees will now receive £109.40 per week. This is an increase of £10.05 per week. The first three days of any absence are considered ‘waiting days’ in which SSP is not payable. SSP will start from day four of the absence. Statutory Redundancy Pay Statutory redundancy pay is only applicable when an employee has a minimum of two years service. The maximum limit on a week’s pay for calculating redundancy pay is increasing to £643 from £571 per week. The maximum amount of Statutory redundancy pay they will be able to claim is £19,290. Statutory Guarantee Pay (SGP) SGP is the payment made whilst an employee is laid off (asked not to work) and is a daily rate paid on any days where an employee is laid off, to a maximum of a normal working week, every 13 weeks. The daily rate will be increased to £35 per day from £31. Maximum basic award for Unfair Dismissal Should an employee feel that they have been unfairly dismissed and they have been employed by you for a period of over two years, then they may be eligible to put a claim in for Unfair Dismissal. If the dismissal is found to be unfair then the employee will be entitled to up to £19,290 in compensation. (30 weeks’ pay subject to the limit of a week’s pay). The maximum compensatory award which includes losses because of their dismissal is up to £105,707. This is subject to a maximum cap of a year’s pay. If you would like to talk to a member of the team to help support you in ensuring your business is compliant, please call us today. This text was originally written by MAD-HR Ltd. Copyright © 2023 MAD-HR Ltd. All rights reserved: https://www.mad-hr.co.uk/blog/confirmation-of-statutory-increases-for-2023